In this modern, fast-paced digital business era, white label crypto exchanges have gained huge traction among potential investors for their speediness, efficiency, and many other advantages involved. Even though they have been gaining immense popularity and are continuing to gain, there are security issues involved with them as well like any other business.
With hundreds of exchanges registering, there is always a hack threat involved. The major reasons why a white label exchange can be hacked are as follows,
Lack of strengthened security codes or weak passwords are the core reason why a white label exchange can be prone to breaches/ hacks.
Lack of proper security protocols. It is important that the exchange is integrated with Two-factor authentication. Failing to do that will make it easier for hackers to access and steal the funds from the exchange.
How can you solve/ avoid security issues for your exchange?
The white label cryptocurrency exchange software you acquire should be integrated with Two-Factor Authentication. It is a process where users have to prove their identity by entering their credentials such as email ID or phone number.
KYC/AML verification is mandatory for any exchange software. It helps you verify the customers and enhance authenticity for your exchange by allowing only legitimate users and transactions.
The exchange should be integrated with strong, multi-layer security protocols such as DDoS protection, CSRF, SSRF Protection, Anti-phishing code, HTTPS protection etc.
The crypto wallet must be secured with proper authentication and multi-signatures.
To avoid such security breaches and achieve a steady, long-lasting white label exchange for your business, conduct extensive research and choose the right, well experienced white label exchange software development company.
